Many researchers and journalists tracking Northvolt’s decline agree that it was at least partly caused by a global drop in demand for electric vehicles (EVs).
In September Volvo abandoned the target to produce only electric cars by 2030, arguing that “customers and markets move at different speeds.” Meanwhile, China, the leader in the electric battery market, was able to lower Northvolt’s prices.
Missing production targets (a key factor in BMW’s exit from a €2bn deal in June), too-rapid expansion and the company’s leadership are also often cited as contributing factors to the crisis.
“Creating batteries is a very complex process. It takes a lot of capital, it takes time, and they obviously just didn’t have the right staff to run the company,” says Andreas Cervenka, a businessman and economic columnist for a Swedish daily newspaper. Aftonbladet.
Madeleine Eriksson, a geographer who studies the impact of so-called “green industries” at Umeå University, says Northvolt has introduced a “save-the-world mentality” that has impressed investors, the media and local politicians.
But this now-or-never approach, she argues, glosses over the fact that it was a risky startup that “never finished raising investment.”
Northvolt did not respond to multiple BBC requests for comment on its fallout or future plans.
The firm hired German Markus Dangelmeier from global electronics company TE Connectivity to run Northvolt’s operations in Shkelefea from January as the company looks to attract new investment.
Northvolt co-founder and CEO Peter Carlson, a former Tesla executive, resigned in November.
